The bounce-back in construction buoyed the growth numbers, shows data

Gross fixed capital formation (investment) hit an all-time high of Rs 13.4 trillion in the fourth quarter of 2020-21

Private consumption and investment have shown a strong rebound in the fourth quarter. While private consumption was recovering slowly after the near 26% decline in the first quarter, Q4 numbers show that it has now bounced back to Rs 21.6 trillion, the second-highest since 2011-12. 

On the other hand, gross fixed capital formation (investment) also hit an all-time high of Rs 13.4 trillion in the fourth quarter of 2020-21. However, preliminary estimates released by MoSPI indicated that private consumption and investment still witnessed a 9.1% and 10.8% contraction for the full year. Most of the heavy-lifting, on account of lockdowns across the country, was done by the government. Government consumption during 2020-21 grew at 2.9%. The gross value added in the fourth quarter increased 3.7% over the last year compared to 1% in Q3. 

The bounce-back in construction—the sector witnessed a double-digit growth of 14.5%—accompanied by a stellar increase in manufacturing (6.9%) and electricity, gas, water supply and other utility services buoyed the growth numbers.